SEC Responds to Coinbase Request for Crypto Clarity – Coinbase, in its pursuit of regulatory clarity, received a response from the U.S. SEC; however, there are no immediate developments. On June 14, Paul Grewal, the chief legal officer of Coinbase, provided an update on the SEC’s response to the company’s persistent appeals for clearer crypto regulations.
The watchdog, which has launched an outright attack on the industry this year, “repeated the fallacy that they haven’t made any decision on new crypto rules,” he reported from the filing. According to the filing, the regulatory body has requested a minimum of four months to formulate a recommendation. “The Commission staff expects to provide their recommendation on Coinbase’s rulemaking petition to the Commission within the next 120 days.”
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Coinbase submitted a petition in July 2022, seeking guidance and enhanced regulatory clarity for the emerging asset class. However, the SEC has largely disregarded it until recently, focusing instead on enforcing regulations through various actions. Furthermore, Grewal stated that the SEC declined to commit to a specific timeframe, disregarding the court’s explicit directive.
Notably, he expressed: “They ignore the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision.” The SEC has faced significant criticism for its aggressive actions against the digital asset sector, resulting in substantial backlash.
A recent bill was introduced by lawmakers in the House of Representatives on June 12, aiming to oust Gary Gensler from his position as the Chair of the SEC and reorganize the financial regulatory body. Senator Warren Davidson and House Majority Whip Tom Emmer spearheaded this initiative, with Davidson stating, “U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” said Davidson.
Despite various developments throughout the week, the cryptocurrency markets have exhibited minimal reactions and continue to consolidate. The total market capitalization has experienced a slight increase of less than one percent, reaching $1.1 trillion. During the Wednesday morning Asian trading session, Bitcoin (BTC) prices surged above $26,000, yet the cryptocurrency remains within a confined trading range.
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Meanwhile, Ethereum (ETH) prices have remained unchanged at $1,744 as of the time of writing. Among the various assets, Binance Coin (BNB) stands out as the sole performer in recovery, exhibiting a 7.6% gain for the day. This positive momentum comes as the court encourages Binance.US and the SEC to engage in dialogue and find a resolution to prevent an asset freeze.
